Marketing Mix and Marketing Strategy of Iphone X
iPhone X marketing Mix and Marketing Strategy
Apple as a technology brand needs no introduction. While the company made an explosive return in the recent years, this kind of growth was mainly due to the strong sales of i-Phones. It is again on the top of the Forbes list. Tim Cook is delivering better than the expectations of industry analysts. While the decline in the PC industry was bad news for the brand, its release of Macbook Pro proved good at retaining sales and the swing in the smartphone industry has again brought it into the limelight. The latest release from Apple, the IPhone X has also seen a warm welcome and Apple’s second quarter results are an indication that Apple is very far from losing its momentum and charm. As per the report, iPhone X is seeing higher sales. This is going to help the brand in several ways, apart from generating higher revenue. According to its description on Apple website, the iPhone X is designed for providing an immersive experience but not without intuitively responding to users’ needs. In this regard, Apple again seems to have surpassed its own standards. Apart from being rich in features, iPhone X is designed to elevate the Apple experience to the next level and create the highest user satisfaction for Apple fans. Like every other piece of technology by Apple, iPhone X has received its due coverage in media and other online and offline channels. Have a look at what is so marvellous about iPhone X through its marketing mix and marketing strategy.
Marketing Mix of Apple iPhone X:
iPhone X is the latest iPhone from the house of Apple. The device is a magnificent piece of technology designed to provide an experience so unique and differentiated that the user can submerse himself in it. This time Apple seems to have been quite aggressive about differentiating its piece from the crowd of smartphones in the market. There is a quite large crowd including the premium priced ones and consumers are spoilt for choice. To stand out, one really needs to work hard on differentiating his product. One great feature about the new iPhone is that it is entirely screen which means no distraction for the user or a completely immersive experience that Apple has designed it for. The device is entirely a 5.8 inch display that both fills the user’s hand and dazzles his eyes. Apart from pushing the line in terms of innovation, Apple has also focused on user convenience in this device where you can reach home without pressing any button and with a single swipe. Multitasking is also easier with the new iPhone. One has to just swipe up and pause to see all the open apps. Apple has packed a lot of technology in very small and simple space. From the infrared camera to ambient light sensor and front camera as well as speaker, everything is placed in the limited space at the top. The Super Retina HD display is also great in terms of colour and contrast.
Apple is a global brand with a very large distribution and sales channel. It manages its business on geographic basis and has divided its market into geographic segments. Its reportable segments include the Americas, Europe, Greater China, Japan and Rest of Asia Pacific. Americas include both North and South America whereas Europe includes European countries, as well as India, the Middle East and Africa. Its greater China operating segment includes China, HongKong and Japan. In the major markets, the company sells its products including iPhone X directly to the consumers using its retail and online stores as well as direct sales force. Apart from that its uses a variety of indirect channels also to sell its products that include third-party cellular network carriers, wholesalers, retailers and value-added resellers.
The computing and smartphone industry is a highly competitive industry. Most of the brands in this industry use a varied pricing strategy to grow their sales and market expansion. However, Apple has used a premium pricing strategy and sells to its customers in the consumer, small and mid-sized business, education, enterprise and government markets. Most of its products come with hefty price tags which only people with a fat income can purchase. The iPhone X starts at $999. The premium pricing strategy of the product is related to its premium image. Despite the rising competition and heavy challenge from the competing brands, Apple has not changed its pricing strategy. However, premium quality and the unique experience that the brand provides support the premium image and premium pricing strategy of the Apple products. This is why its customers do not mind paying the extra price. Despite its premium pricing strategy, the brand has retained a large customer base and market share.
Just like its unique products, the brand uses a unique marketing strategy for the promotion of its brands. In case of Apple, marketing always begins from the products itself. However, being a great brand does have its own advantages and this can be a major support providing a strong launching platform for any new release. Apple is not just the most influential but also the most talked of brand all round the world. In case of iPhone X while the brand name of Apple has been enough to generate very high level of publicity, the phone also attracted publicity and discussions for its exceptional features. Apart from that, the brand has used a mix of online and offline channels for the promotion of its brand and products. Along with its own website, Apple has marketed the iPhone X using online advertising. Amazon as well as other e-retail channels that sell the iPhone X are also being used for the marketing of the brand. Several blogs and websites talking of the product also help with the marketing of the iPhone X.
Marketing Strategy of iPhone X:
As already mentioned, in case of Apple it is the product from where the marketing strategy begins. While Apple has a great branding strategy and its brand image and equity also provide support to the marketing of its products, the brand has also used a mix several marketing channels for the marketing and promotion of iPhone X. The first important factor that Apple has used in the marketing of iPhone X is differentiation. This time Apple has clearly used a strategy to differentiate its product from the entire crowd including the best premium smartphones currently available in the market. This differentiation strategy is at the root of the marketing strategy of Apple iPhone X. The market is full of smartphones and while iPhone has always remained a celebrity, the challenge from Samsung Galaxy and some other premium models currently available in the market has been enormous.
How can differentiation help with marketing?
The differentiation strategy can be an enormous support in terms of marketing and helps the brand or product achieve a competitive advantage. However, there can be different bases for differentiation. One can differentiate the product on the basis of quality, technology, price or even the marketing strategy employed. One can make an outstanding product that is better than those available in the market or use a competitive pricing strategy to achieve higher sales than the competitors. In case of iPhone X, the product targets premium customers looking for elegant products that provide better functionality and an improved customer experience. Apart from being loaded with excellent features, the iPhone X is designed in a manner to provide extraordinary convenience that makes the customer feel like immersed in the experience. There are so many things that are different about Apple's Iphone X. Apart from the clever use of screen space that you can move till the edges without hitting a hurdle, the iPhone comes loaded with other superb features too. However, the central attraction is still the screen. A 5.8 inch Super Retina screen with the front camera, infra red camera and other features including the speaker confined to the little space at the top, the phone is real convenient to use. Apple has changed several things in this model of iPhone that make it a real cool gadget. Apple notes that it always wanted to make an iPhone that was all screen and it has realized that dream with the iPhone X. Augmented reality, face recognition, payment with face id, animojies of self and similar more features along with the most powerful chip make it stand out. So, in terms of differentiation based on technology and quality, Apple decided to move deeper than ever.
It added multitasking features so both individual customers and professionals it. Thus you see quality and technology based differentiation is at the core of the brand's marketing strategy and the success of this strategy has started reflecting in the sales of iPhones. Tim Cook spoke that this was one of the best March quarters ever for Apple with strong revenue growth in iPhone, services and wearables. "“Customers chose iPhone X more than any other iPhone each week in the March quarter, just as they did following its launch in the December quarter. We also grew revenue in all of our geographic segments, with over 20% growth in Greater China and Japan.” Apple has again pushed the bar higher for its competitors with features that would not just be difficult to match but will continue to give heartburns to the competing brands. A successful marketing strategy is not just about increasing sales, it is also about a stronger customer connection. In the recent years, Apple's performance has improved fast and this would have left its founder Steve jobs feeling proud. However, while differentiation is at the core of its marketing strategy, that is not the entire story. Apple has successfully utilized all the available channels of marketing for finding faster growth and establish a formidable presence for its iPhone X in the market.
Utilization of online and offline channels of marketing
This is the era of the digital technology and every brand is utilizing the digital channels in unprecedented ways for creating maximum impact in terms of marketing and promotion. Apple has also used a digital marketing strategy for the marketing of iPhone X. iPhone videos on YouTube apart from familiarizing the users with its features also promote the product in an engaging manner. The 'meet iPhone X' video on YouTube has already received around 25 million views. Another video highlighting the face unlock feature of iPhone X has received more than 10 million views. This shows how iPhone X is rocking on the social media. Among the other channels of online marketing including its own website are the e-commerce websites selling the iPhone X. As you Google for the product, several results from Amazon pop up at the top and in the sidebar. These are not just sales channels but also excellent marketing channels for the much hyped Apple product. Apple continues to widen its reach with events. Media and the other product review websites have also given the product its due coverage. Since Apple is a celebrity brand any product from its house ignites a lot of discussion and that too helps with the marketing of the product. The brand also uses its physical retail stores and distribution channels for the sales and marketing of its brand.
Apple always uses a multi-pronged strategy for the marketing of its brand and products. However, publicity has always remained its best tool for promotion. Tim Cook has attended several events where he talked of Apple's technology and its most special kid iPhone X. These events do not just get media coverage but also a very high level of social media coverage. Thousands of news and technology blogs and websites also publicize Apple's products and technologies or events regularly. Being the most powerful brand on the Forbe's list has its own advantages and Apple continues to enjoy very high limelight. This time it has given all these sources a lot more to talk about with its iPhone X. The results of these efforts are growing visible in the form of rising sales and revenue.
Apple Annual Report